TaxTMI 
TaxTMI 
TaxTMI 
2015 (6) TMI 643
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....tion 154 by the AO annulled by which the AO disallowed to the assessee excess duty of Rs. 29,17,01,515/-, penal interest of Rs. 12,93,62,086/- and central excise and interest amounting to Rs. 3,42,56,200/-. 3. Brief facts relating to this case are that the return showing loss of Rs. 29,09,33,405/- was filed by the assessee on 29.03.2009. Subsequently, an assessment was completed under section 143(3) allowing the claim of the assessee in respect of payments made for excise duty amounting to Rs. 29,17,01,515/- and interest thereon at Rs. 12,93,62,086/- on various dates from the period 1.04.2008 to 31.03.2009, which pertains to the period or previous years 2001-02 to 2005-06. Subsequently, the AO was of the opinion that these payments do not ....
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....of sale and evading income taxes on profit of suppressed sale, the unaccounted money invested to do the suppressed sale. Identically, another sum of Rs. 2,42,56,200/- as part of Excise Duty evasion and pertains to the past years covered by the order of Settlement Commission of Excise & Customs as well as the part of additional income before ITSC Kolkata and also an issue (questioned) vide the notice u/s.154 of I.T. Act, 1961 is also being disa1lowed for not being the income as referred u/s.28 of I.T. Act, 1961 hence the same is not supported by the clause (a) to the section 43B of I.T. Act, 1961. It is worth mentioning that it is penal in nature and not allowable u/s.37 of IT Act, 1961 also. In addition to the above, it is also reiterated t....
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....for the assessment years 2001-02 to 2005-06 were determined which consisted excise duty, interest thereon and some penalties. Consequently, Income Tax Settlement Commission passed final order of settlement dated 28.03.2008, which matter by and large follows from the Central Excise Settlement Commission's settlement order. The assessee, in the return for the assessment year 2009-10, filed on 23.09.2009, has shown towards the excise duty and excise deduction. The AO allowed the claim in the assessment order passed under section 143(3). The CIT(A) also noted from the assessment record that there was revenue audit observation raised on the issue for the earlier assessment year 2008-09 that part of the excise duty paid in the previous year relev....
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....gendum dated 28.03.2008, the case was settled for an amount of Rs. 57,43,83,420/- towards excise duty and penalty of Rs. 40 crores and the payment of interest. The assessee filed a writ petition before the Hon'ble Delhi High Court and the prayer for the payment of the aforesaid dues was extended from time to time. In view of the order, the Hon'ble Delhi High Court as well as the Central Excise Settlement Commission, the assessee made the following payments during the impugned assessment year. (a) Duty of Rs. 14,58,50,758/- paid vide Challan No.TR-06/001 dated 28.4.2008. (b) Duty of Rs. 14,58,50,757/- paid vide Challan No.TR-06/002 dated 31.05.2008. (c) Interest of Rs. 12,93,62,086/- paid on 16.02.2009 and 17.03.2009 vide Challan Nos. T....
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....tever name called, under any law shall be allowed (irrespective of previous year, in which liability to pay such sum, was incurred by the assessee according to the method of accounting regularly employed by him) only in the previous year, in which such sum is actually paid by the assessee. In view of the clear mandate of section 43B(a), we are of the view that law is very clear that the excise duty is deductible in the year, in which, the assessee has actually paid the excise duty. The ld. DR before us, even though vehemently relied on the order of the AO passed under section 154, but could not bring to our notice that there can be two conceivable opinion in respect of deduction of excise duty that it will not be allowed in the year in whic....
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....wing the mercantile system of accounting. In the mercantile system of accounting, a liability is deductible when it accrues. In the case of the assessee, we noted that the Central Excise Settlement Commission passed the order on 29.02.2008 with corrigendum dated 28.03.2008. Therefore, so far the interest is concerned, the liability accrues when the order was passed by Central Excise Settlement Commission. But the assessee filed a writ petition before the Hon'ble Delhi High Court and the Delhi High Court allowed time to the assessee for making the payment of dues including the central excise as well as interest thereon. The interest no doubt paid during the year but there is no provision under the Income Tax Act para 2 section 43B, which all....